Federal government programs distribute payments each year to farms, farm operators, and their households. For example, USDA’s Conservation Reserve Program and Environmental Quality Incentive Program provide payments to operators for conservation purposes. And USDA’s commodity programs, such as Price Loss Coverage and Agriculture Risk Coverage, pay producers when prices or revenues fall below a certain level. “Other payments” include disaster assistance programs and other federal, state and local programs.
In 2016, only 23 percent of all residence farms and 33 percent of all intermediate farms received any government payments, compared to 69 percent of all commercial farms. The amount of government payments received varied by farm type.
Commercial farms that received payments got an average of $42,459, with commodity payments accounting for the majority (70 percent) of the total. On the other hand, conservation payments were relatively more important for residence and intermediate farms—accounting for about 70 percent and 38 percent of total payments, respectively. — USDA Economic Research Service
